‘Success story’ D-Line acquired by Luceco in £12.4m deal
ATYNESIDE cable management business has been snapped up by a Shropshire group in a £12.4m deal.
North Shields based D-Line has been acquired by Luceco PLC, a Telford based supplier of wiring accessories, EV chargers, LED lighting and portable power products.
The deal has been agreed for initial cash consideration of £8.6m and up to £3.8m of contingent consideration, on a cash and debt-free basis.
Launched in 2006, the business designs and supplies a range of innovative cable management solutions, including decorative cable trunking and accessories, floor cable protectors and cable organisers, and it has seen its workforce treble from around 20 employees to 60 in the last 10 years.
D-Line supplies retail, wholesale and e-commerce customers mainly in the UK, Europe and North America, supporting its US customers from a sales and distribution facility in Louisville, Kentucky.
Turnover has rocketed from circa £3m in 2014 to £17m in 2023, generating underlying operating profit of £1.4m. Gross assets at the end of the period were £8.1m.
The acquisition is expected to be earnings enhancing in its first full year of ownership.
The business will continue to operate from its existing locations and the senior management team will remain with the business.
John Hornby, chief executive Officer of Luceco, said: “D-Line’s product range is a natural fit alongside our existing categories.
“The business has developed a strong brand in the UK and internationally, and we are particularly excited about the opportunity to leverage D-Line’s operation in North America to support our growing business in the territory.”
Founder Paul Ruddick added: “D-Line is proud to have developed a trusted brand and marketleading ranges, with a great distribution network.
“And we have a strong momentum for progress, all made possible by the skills and dedication of our teams, and the support of shareholders. Joining Luceco gives fantastic new opportunities, as we look forward to exploiting the strong synergies between us; including focus on delivering further innovation in categories where we have complementary products.”
The deal marks an exit for investor Middleton Enterprises, based in Newcastle.
The firm operates a growth capital model of investment to finance fast-growing and profitable businesses and said it saw the big potential of D-Line from the start.
Jeremy Middleton, founder of family office investment firm Middleton Enterprises, said: “The business had a clear vision to satisfy the gap for new design-led products to sort cables, in a niche that was obviously lacking innovation.
“We’ve been delighted to support D-Line in building a business we can be proud of. They are truly a North East success story.
“We exit now appreciating there is an exciting new journey for D-Line as part of Luceco PLC, and we eagerly anticipate how they propel the business into its next stage.”